DBS Bank (China) Ltd, the mainland China unit of Singapore's DBS Group SGX:D05, plans to issue 2 billion yuan ($295 million) of onshore Tier 2 capital bonds, according to a term sheet on Tuesday.
The bank will open bookbuilding on July 7 and settle the deal on July 9, the term sheet showed. Bookbuilding is when investors place orders before final pricing is set.
The bonds will mature in 10 years, but DBS China can repay them after five years. Tier 2 bonds are bank debt that can absorb losses if a lender gets into financial difficulty.
China Chengxin International Credit Rating rated DBS China AAA and the bonds AA+, the term sheet showed.
The bonds will be eligible for Bond Connect, which allows offshore investors to trade in China's bond market.
The price range is yet to be announced.
($1 = 6.7794 Chinese yuan)